Annual interest rates in the thousands of percent... National Police Agency issues special directive to strengthen crackdown on illegal private loans

Establishment of Dedicated Investigation Team, Focusing Investigative Capabilities

The National Police Agency's National Investigation Headquarters announced on the 14th that it held a video conference with the investigative leadership of police agencies across all cities and provinces nationwide and instructed a special crackdown on illegal private loans.

Police Agency building. Photo by Kim Hyun-min

According to the National Police Agency, from January to October this year, the number of illegal private loan damage cases reached 2,789, a 58% increase compared to the same period last year. During the same period, the number of arrests was 1,671, up 44%, and the recovery of criminal proceeds increased 4.6 times to 16.9 billion won.

The National Police Agency has been conducting a special crackdown on illegal private loans since November 2022. However, as criminal damages continue to rise, it has decided to extend the crackdown period until October next year. Additionally, dedicated investigation teams for illegal private loans will be established at police agencies in all cities and provinces nationwide to promptly initiate investigations. Furthermore, incentives such as immediate promotions will be actively pursued for outstanding cases, including the arrest of malicious illegal private loan organizations.

Woo Jong-su, head of the National Investigation Headquarters, referred to a recent case where a young woman with a young daughter passed away after suffering from illegal debt collection, saying, “I feel deeply sorry and heartbroken for the hardships and suffering the victim must have endured, and through this nationwide special crackdown, we will definitely eradicate illegal private loans.”